Wednesday's Final Takeaways: Norway Sovereign Wealth Fund's Tech Boost & Tencent Sell-Off

**Sam Vadas** (0:02)
Welcome back to Market Unclosed. I'm Sam Vadas, live at the New York Stock Exchange. Some final thoughts on today's session. And one of my biggest takeaways on the day was this further validation we got at the tech trade. We had some solid earnings from CoreWeave, Lumentum and Supermicro, all of which represent very different but important layers of the AI infrastructure build out. These companies are also part of Nvidia's ecosystem. So after a tough July, the chips are rallying again. Memory had a particularly good day. It came after a strong session for Asian memory companies like Samsung, SK Hynek, CXMT and Hyoksia. So this was global, but there was also this report that Singapore Sovereign Wealth Fund, Temasek, was planning to invest in Samsung and SK Hynek. So that likely helped fuel some of the gains and further validates the boom.
Then you had Norway Sovereign Wealth Fund posting a record first half profit of more than $184 billion thanks in part to that rally in Asian tech stocks in the first six months of the year, which saw a 9.4% return. But what's important about this one is roughly 40% of the Norgers Bank Investment Fund is made up of US equities, including Nvidia, Microsoft, Tesla and Apple. And the latest report also disclosed a stake in SpaceX worth about $1.2 billion. But it was a tough day for shares in Tencent after a mixed report, the Chinese tech giant posting Q2 revenue beat of 11% year over year to $30.4 billion thanks to a 17% year over year jump in gaming and growth in its AI-driven advertising, but profits missed expectations. The company's CapEx also came in higher, driven by AI spending. So the stock is down nearly 30% in Hong Kong. We're watching to see how shares do trade tonight. And then looking ahead to tomorrow, it's another heavy slate of earnings on tap. We've got some of the key names that are worth watching being Applied Materials, we've got Lenovo and JD, obviously investors are watching out for demand trends for AMAT, given it's a beneficiary of the AI boom.
Obviously for Lenovo, the market is looking for continued outperformance in its service business, server business, and JD, profit margin recovery is a very big focus right now amid heavy AI investments and local competition happening over in China. We've also got the producer prices, which will be key as to whether we're seeing any easing at the wholesale level thanks to obviously what we're seeing in the Middle East. That's what's going to do it for us for Market on Close here today. I'm Sam Vadas. Thanks for watching. Be sure to download the Schwab Network app available at the Apple App Store. We'll catch you same place same time tomorrow.